--- a/networking/telnetd.c
+++ b/networking/telnetd.c
@@ -306,6 +306,7 @@ make_new_session(
 
 	/* Restore default signal handling ASAP */
 	bb_signals((1 << SIGCHLD) + (1 << SIGPIPE), SIG_DFL);
+	signal(SIGINT, SIG_DFL);
 
 	/* Make new session and process group */
 	setsid();